Southern Technologies Ltd. v. JCIT

320 ITR 577Supreme Court of India2010#216 most cited

What is Southern Technologies Ltd. v. JCIT authority for?

The case concerns the allowability of deductions for provisions made under Section 36 of the Income Tax Act, 1961, especially those related to bad and doubtful debts. It distinguishes such deductions from the recognition of interest income on non-performing assets (NPAs).

353

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2010 to 2026.

Also referred to as

Southern Technologies Ltd. v. JCIT · Section 36 deduction · provision for bad and doubtful debts · Section 36(1)(viia) · Section 36(1)(vii) · allowability of provision · MAT section 115JB · non-performing assets · profits and gains of business or profession · bad debt deduction conditions · Income Tax Act 1961

Sections most often in play

Section 36(1)(vii)Section 14ASection 1961Section 115JBSection 37(1)Section 143(3)Section 36(1)(viia)Section 10(34)
Read the full judgment

Issues it is cited on

section 36(2)(v)section 41(4)section 36(1)(viia)section 36(2)section 36(1)(vii)section 36(1)(viii)section 115jb(2)section 10(34)additional depreciationsection 41section 36(1)profits and gains of business or profession

Judgments citing Southern Technologies Ltd. v. JCIT

Inocme Tax Officer Ward -2, Bhandara vs. The Bhandrara Urban Co-Operative Bank Limited, Bhandara

In the result, the appeals filed by the Revenue stand dismissed

ITA 158/NAG/2019[2009-10]Status: DisposedITAT Nagpur29 May 2024AY 2009-10

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Manoj G. MoryaniFor Respondent: Shri Kailash C. Kanojiya
Section 2Section 36Section 36(1)Section 36(1)(viia)Section 56

…016; ii) ACIT v/s Arvind Sahakari Bank Ltd., ITA no.376 & 377/Nag./2013, order dated 16/09/2015; iii) CIT v/s M/s. Deogiri Nagari Sahakari Bank Ltd., ITA no.53 of 2014, judgment dated 22/01/2015 (HC-Aurangabad); iv) Southern Technologies Ltd. v/s JCIT, [2010] 320 ITR 577 (SC); v) Godhra Electricity Co. Ltd. v/s CIT, [1977] 225 ITR 746 (SC); vi) Mercantile Bank Ltd. v/.s CIT, Appeal (Civil) no.310 of 2001, judgment dated 01/05/2006 (SC); vii) CIT v/s Vasisth Chay Vyapar Ltd. [2011] 330 ITR 440 (HC-Del.); and viii) UCO Bank v/s CIT, judgment dated 13/05/1999. 7. We have heard the rival arguments, perused the materi…

Karur Vysya Bank Ltd., Karur vs. DCIT Circle 2(1), Trichy

ITA 678/CHNY/2019[2015-16]Status: DisposedITAT Chennai09 Apr 2024AY 2015-16

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकरअपीलसं./Ita Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Karur Vysya Bank Ltd, Deputy Commissioner Of Central Office, V. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [Pan: Aaact-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 Deputy Commissioner Of M/S. Karur Vysya Bank Ltd, Income Tax, V. Central Office, Circle -2(1), Erode Road, Trichy. Karur – 639 002. [Pan: Aaact-3373-J (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By : Shri. Anandhan, Ca & Smt. Lalitha, Ca Revenue By : Shri. Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 13.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.04.2024 आदेश /O R D E R

For Appellant: Shri. Anandhan, CA and Smt. Lalitha, CAFor Respondent: Shri. Nilay Baran Som, CIT
Section 36(1)(viii)Section 41(1)Section 43B

…आयकर अपीलीय अिधकरण,‘ए’ "यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी वी दुगा"राव,"याियक सद"य एवं "ी मंजुनाथा.जी, लेखा सद"य के सम" BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/s. Karur Vysya Bank Ltd, Deputy Commissioner of Central Office, v. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [PAN: AAACT-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./ITA Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-…

Karur Vysya Bank Ltd., Karur vs. DCIT Circle 2(1), Trichy

ITA 677/CHNY/2019[2014-15]Status: DisposedITAT Chennai09 Apr 2024AY 2014-15

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकरअपीलसं./Ita Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Karur Vysya Bank Ltd, Deputy Commissioner Of Central Office, V. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [Pan: Aaact-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 Deputy Commissioner Of M/S. Karur Vysya Bank Ltd, Income Tax, V. Central Office, Circle -2(1), Erode Road, Trichy. Karur – 639 002. [Pan: Aaact-3373-J (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By : Shri. Anandhan, Ca & Smt. Lalitha, Ca Revenue By : Shri. Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 13.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.04.2024 आदेश /O R D E R

For Appellant: Shri. Anandhan, CA and Smt. Lalitha, CAFor Respondent: Shri. Nilay Baran Som, CIT
Section 36(1)(viii)Section 41(1)Section 43B

…आयकर अपीलीय अिधकरण,‘ए’ "यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी वी दुगा"राव,"याियक सद"य एवं "ी मंजुनाथा.जी, लेखा सद"य के सम" BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/s. Karur Vysya Bank Ltd, Deputy Commissioner of Central Office, v. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [PAN: AAACT-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./ITA Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-…

DCIT Circle 2(1), Trichy vs. The Karur Vysya Bank Ltd., Karur

ITA 1343/CHNY/2019[2014-15]Status: DisposedITAT Chennai09 Apr 2024AY 2014-15

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकरअपीलसं./Ita Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Karur Vysya Bank Ltd, Deputy Commissioner Of Central Office, V. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [Pan: Aaact-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 Deputy Commissioner Of M/S. Karur Vysya Bank Ltd, Income Tax, V. Central Office, Circle -2(1), Erode Road, Trichy. Karur – 639 002. [Pan: Aaact-3373-J (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By : Shri. Anandhan, Ca & Smt. Lalitha, Ca Revenue By : Shri. Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 13.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.04.2024 आदेश /O R D E R

For Appellant: Shri. Anandhan, CA and Smt. Lalitha, CAFor Respondent: Shri. Nilay Baran Som, CIT
Section 36(1)(viii)Section 41(1)Section 43B

…आयकर अपीलीय अिधकरण,‘ए’ "यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी वी दुगा"राव,"याियक सद"य एवं "ी मंजुनाथा.जी, लेखा सद"य के सम" BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/s. Karur Vysya Bank Ltd, Deputy Commissioner of Central Office, v. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [PAN: AAACT-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./ITA Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-…

DCIT Circle 2(1), Trichy vs. The Karur Vysya Bank Ltd., Karur

ITA 1321/CHNY/2019[2015-16]Status: DisposedITAT Chennai09 Apr 2024AY 2015-16

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकरअपीलसं./Ita Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Karur Vysya Bank Ltd, Deputy Commissioner Of Central Office, V. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [Pan: Aaact-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./Ita Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 Deputy Commissioner Of M/S. Karur Vysya Bank Ltd, Income Tax, V. Central Office, Circle -2(1), Erode Road, Trichy. Karur – 639 002. [Pan: Aaact-3373-J (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By : Shri. Anandhan, Ca & Smt. Lalitha, Ca Revenue By : Shri. Nilay Baran Som, Cit सुनवाई क" तारीख/Date Of Hearing : 13.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 09.04.2024 आदेश /O R D E R

For Appellant: Shri. Anandhan, CA and Smt. Lalitha, CAFor Respondent: Shri. Nilay Baran Som, CIT
Section 36(1)(viii)Section 41(1)Section 43B

…आयकर अपीलीय अिधकरण,‘ए’ "यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी वी दुगा"राव,"याियक सद"य एवं "ी मंजुनाथा.जी, लेखा सद"य के सम" BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA Nos.: 677 & 678/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/s. Karur Vysya Bank Ltd, Deputy Commissioner of Central Office, v. Income Tax, Erode Road, Circle -2(1), Karur – 639 002. Trichy. [PAN: AAACT-3373-J] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकरअपीलसं./ITA Nos.: 1343 & 1321/Chny/2019 िनधा"रणवष" / Assessment Years: 2014-…

ACIT Corporate Circle -1 (1), Kochi vs. M/S Geofin Comtrade Ltd, Kochi

In the result, the Revenue’s appeals are allowed

ITA 968/COCH/2022[2014-15]Status: DisposedITAT Cochin13 Mar 2024AY 2014-15

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmi

For Appellant: Ms. Rohini Thampi, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 36(1)(vii)

…s raise a single issue, i.e., whether the assessee’s claim for deduction u/s. 36(1)(vii) of the Act for the relevant year is in accordance with law, i.e., as explained by the Hon'ble Apex Court per it’s decision in Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577 (SC), and as further reiterated and explained by it in Vijaya Bank v. CIT [2010] 323 ITR 166 (SC). Interestingly, both the assessee and the Revenue claiming satisfaction of the conditions for a write off (of a bad debt as irrecoverable) in accounts, i.e., as mandated by section 36(1)(vii) of ITA No. 967 & 968/Coch/2022 (AYs. 2013-14 & 2014-15) A…

ACIT, Kochi vs. M/S.Geofin Comtrade Ltd, Kochi

In the result, the Revenue’s appeals are allowed

ITA 967/COCH/2022[2013-14]Status: DisposedITAT Cochin13 Mar 2024AY 2013-14

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmi

For Appellant: Ms. Rohini Thampi, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 36(1)(vii)

…s raise a single issue, i.e., whether the assessee’s claim for deduction u/s. 36(1)(vii) of the Act for the relevant year is in accordance with law, i.e., as explained by the Hon'ble Apex Court per it’s decision in Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577 (SC), and as further reiterated and explained by it in Vijaya Bank v. CIT [2010] 323 ITR 166 (SC). Interestingly, both the assessee and the Revenue claiming satisfaction of the conditions for a write off (of a bad debt as irrecoverable) in accounts, i.e., as mandated by section 36(1)(vii) of ITA No. 967 & 968/Coch/2022 (AYs. 2013-14 & 2014-15) A…

M/S. City Union Bank, Kumbakonam vs. DCIT, Circle - 2 (1), Trichy

In the result, appeal filed by the revenue for assessment year 2017-18 is partly allowed for statistical purposes

ITA 672/CHNY/2020[2017-18]Status: DisposedITAT Chennai11 Mar 2024AY 2017-18

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1120 & 1121/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 M/S. City Union Bank Ltd., Asst. Commissioner Of Income- Administrative Office V. Tax, “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 672/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. City Union Bank Ltd., Deputy Commissioner Of Administrative Office V. Income-Tax, “Narayana” Circle -2(1), 24-B, Gandhi Nagar, Trichy. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1418 & 1419/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 Asst. Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 636/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -2(1), 24-B, Gandhi Nagar

For Respondent: Shri. Nilay Baran Som, CIT

…t lead to any corresponding automatic change in Rule 6EB. :-106-: ITA. No: 1120, 1121, 1418 & 1419/Chny/2019, 636 & 672/Chny/2020 12. The CIT(A) failed to appreciate the decision of the Supreme Court in the case of Southern Technologies Ltd Vs Jt. CIT[2010] 320 ITR 577 which held that RBI Act does not override the provisions of the Act. 13. The CIT(A) erred in deleting the addition made on account of stale draft & Cheque without appreciating the facts that the assessee has never transferred these funds to the "Depositor Education and Awareness Fund". 14. The CIT(A) failed to appreciate the decision of ITAT, Che…

DCIT Circle-2(1), Trichy vs. City Union Bank Limited, Kumbakonam

In the result, appeal filed by the revenue for assessment year 2017-18 is partly allowed for statistical purposes

ITA 636/CHNY/2020[2017-18]Status: DisposedITAT Chennai11 Mar 2024AY 2017-18

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1120 & 1121/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 M/S. City Union Bank Ltd., Asst. Commissioner Of Income- Administrative Office V. Tax, “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 672/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. City Union Bank Ltd., Deputy Commissioner Of Administrative Office V. Income-Tax, “Narayana” Circle -2(1), 24-B, Gandhi Nagar, Trichy. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1418 & 1419/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 Asst. Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 636/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -2(1), 24-B, Gandhi Nagar

For Respondent: Shri. Nilay Baran Som, CIT

…t lead to any corresponding automatic change in Rule 6EB. :-106-: ITA. No: 1120, 1121, 1418 & 1419/Chny/2019, 636 & 672/Chny/2020 12. The CIT(A) failed to appreciate the decision of the Supreme Court in the case of Southern Technologies Ltd Vs Jt. CIT[2010] 320 ITR 577 which held that RBI Act does not override the provisions of the Act. 13. The CIT(A) erred in deleting the addition made on account of stale draft & Cheque without appreciating the facts that the assessee has never transferred these funds to the "Depositor Education and Awareness Fund". 14. The CIT(A) failed to appreciate the decision of ITAT, Che…

ACIT Circle 1, Kumbakonam vs. City Union Bank Ltd., Kumbakonam

In the result, appeal filed by the revenue for assessment year 2017-18 is partly allowed for statistical purposes

ITA 1419/CHNY/2019[2016-17]Status: DisposedITAT Chennai11 Mar 2024AY 2016-17

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1120 & 1121/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 M/S. City Union Bank Ltd., Asst. Commissioner Of Income- Administrative Office V. Tax, “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 672/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. City Union Bank Ltd., Deputy Commissioner Of Administrative Office V. Income-Tax, “Narayana” Circle -2(1), 24-B, Gandhi Nagar, Trichy. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1418 & 1419/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 Asst. Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 636/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -2(1), 24-B, Gandhi Nagar

For Respondent: Shri. Nilay Baran Som, CIT

…t lead to any corresponding automatic change in Rule 6EB. :-106-: ITA. No: 1120, 1121, 1418 & 1419/Chny/2019, 636 & 672/Chny/2020 12. The CIT(A) failed to appreciate the decision of the Supreme Court in the case of Southern Technologies Ltd Vs Jt. CIT[2010] 320 ITR 577 which held that RBI Act does not override the provisions of the Act. 13. The CIT(A) erred in deleting the addition made on account of stale draft & Cheque without appreciating the facts that the assessee has never transferred these funds to the "Depositor Education and Awareness Fund". 14. The CIT(A) failed to appreciate the decision of ITAT, Che…

ACIT Circle 1, Kumbakonam vs. City Union Bank Ltd., Kumbakonam

In the result, appeal filed by the revenue for assessment year 2017-18 is partly allowed for statistical purposes

ITA 1418/CHNY/2019[2015-16]Status: DisposedITAT Chennai11 Mar 2024AY 2015-16

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1120 & 1121/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 M/S. City Union Bank Ltd., Asst. Commissioner Of Income- Administrative Office V. Tax, “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 672/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. City Union Bank Ltd., Deputy Commissioner Of Administrative Office V. Income-Tax, “Narayana” Circle -2(1), 24-B, Gandhi Nagar, Trichy. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1418 & 1419/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 Asst. Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 636/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -2(1), 24-B, Gandhi Nagar

For Respondent: Shri. Nilay Baran Som, CIT

…t lead to any corresponding automatic change in Rule 6EB. :-106-: ITA. No: 1120, 1121, 1418 & 1419/Chny/2019, 636 & 672/Chny/2020 12. The CIT(A) failed to appreciate the decision of the Supreme Court in the case of Southern Technologies Ltd Vs Jt. CIT[2010] 320 ITR 577 which held that RBI Act does not override the provisions of the Act. 13. The CIT(A) erred in deleting the addition made on account of stale draft & Cheque without appreciating the facts that the assessee has never transferred these funds to the "Depositor Education and Awareness Fund". 14. The CIT(A) failed to appreciate the decision of ITAT, Che…

City Union Bank Limited, Kumbakonam vs. ACIT Circle 1, Kumbakonam

In the result, appeal filed by the revenue for assessment year 2017-18 is partly allowed for statistical purposes

ITA 1121/CHNY/2019[2016-17]Status: DisposedITAT Chennai11 Mar 2024AY 2016-17

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1120 & 1121/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 M/S. City Union Bank Ltd., Asst. Commissioner Of Income- Administrative Office V. Tax, “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 672/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. City Union Bank Ltd., Deputy Commissioner Of Administrative Office V. Income-Tax, “Narayana” Circle -2(1), 24-B, Gandhi Nagar, Trichy. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1418 & 1419/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 Asst. Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 636/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -2(1), 24-B, Gandhi Nagar

For Respondent: Shri. Nilay Baran Som, CIT

…t lead to any corresponding automatic change in Rule 6EB. :-106-: ITA. No: 1120, 1121, 1418 & 1419/Chny/2019, 636 & 672/Chny/2020 12. The CIT(A) failed to appreciate the decision of the Supreme Court in the case of Southern Technologies Ltd Vs Jt. CIT[2010] 320 ITR 577 which held that RBI Act does not override the provisions of the Act. 13. The CIT(A) erred in deleting the addition made on account of stale draft & Cheque without appreciating the facts that the assessee has never transferred these funds to the "Depositor Education and Awareness Fund". 14. The CIT(A) failed to appreciate the decision of ITAT, Che…

City Union Bank Limited, Kumbakonam vs. ACIT Circle 1, Kumbakonam

In the result, appeal filed by the revenue for assessment year 2017-18 is partly allowed for statistical purposes

ITA 1120/CHNY/2019[2015-16]Status: DisposedITAT Chennai11 Mar 2024AY 2015-16

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita Nos.: 1120 & 1121/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 M/S. City Union Bank Ltd., Asst. Commissioner Of Income- Administrative Office V. Tax, “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 672/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 M/S. City Union Bank Ltd., Deputy Commissioner Of Administrative Office V. Income-Tax, “Narayana” Circle -2(1), 24-B, Gandhi Nagar, Trichy. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos.: 1418 & 1419/Chny/2019 िनधा"रण वष" / Assessment Years: 2015-16, 2016-17 Asst. Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -1, 24-B, Gandhi Nagar, Kumbakonam. Kumbakonam- 612 001. [Pan: Aaacc-1287-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita No.: 636/Chny/2020 िनधा"रण वष" / Assessment Year: 2017-18 Deputy Commissioner Of M/S. City Union Bank Ltd., Income-Tax, V. Administrative Office “Narayana” Circle -2(1), 24-B, Gandhi Nagar

For Respondent: Shri. Nilay Baran Som, CIT

…t lead to any corresponding automatic change in Rule 6EB. :-106-: ITA. No: 1120, 1121, 1418 & 1419/Chny/2019, 636 & 672/Chny/2020 12. The CIT(A) failed to appreciate the decision of the Supreme Court in the case of Southern Technologies Ltd Vs Jt. CIT[2010] 320 ITR 577 which held that RBI Act does not override the provisions of the Act. 13. The CIT(A) erred in deleting the addition made on account of stale draft & Cheque without appreciating the facts that the assessee has never transferred these funds to the "Depositor Education and Awareness Fund". 14. The CIT(A) failed to appreciate the decision of ITAT, Che…

Muthoot Agri Projects and Hospitalities P. Ltd, Maharastra vs. ACIT, Trivandrum

In the result, the assessee’s appeal is allowed

ITA 153/COCH/2021[2014-15]Status: DisposedITAT Cochin07 Mar 2024AY 2014-15

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmi

For Appellant: Sri.Anil D Nair, AdvocateFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 56Section 57

…p.a., u/s.57(iii). Only real income, subject no doubt to the provisions of the Act, is liable to be taxed. The matter is well settled (see, inter alia, Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC); Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577 (SC); CWT v. Bombay Suburban Electric Supply Ltd. [1976] 103 ITR 384 (Bom)). The reliance by the Revenue on the decision in Tuticorin Alkali Chemicals (supra) is opposite. So, however, in the facts of the case, as noted by it (pg. 180 E of the Reports), there was no claim by the assessee in respect of interest paid, or for that matter, any expend…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

In the result, all the appeals filed by the revenue stands dismissed and the cross objections being C

ITA 946/BANG/2023[2015-16]Status: DisposedITAT Bangalore19 Jan 2024AY 2015-16

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…o the extent of the provision for bad and doubtful debt is sufficient? 6. The first question is no more res integra. Recently, a Division Bench of this Court in the case of Southern Technologies Limited vs. Joint Commissioner of Income Tax, reported in [2010] 320 ITR 577, [in which one of us [S.H. Kapadia,J.] was a party] had an occasion to deal with the first question and it has been answered, accordingly, in favour of the assessee vide Paragraph (25), which reads as under: Page 26 ITA Nos. 943 to 946/Bang/2023 & C.O. Nos. 14 to 17/Bang/2023 “Prior to April 1, 1989, the law, as it then stood, took the view that…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

In the result, all the appeals filed by the revenue stands dismissed and the cross objections being C

ITA 945/BANG/2023[2014-15]Status: DisposedITAT Bangalore19 Jan 2024AY 2014-15

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…o the extent of the provision for bad and doubtful debt is sufficient? 6. The first question is no more res integra. Recently, a Division Bench of this Court in the case of Southern Technologies Limited vs. Joint Commissioner of Income Tax, reported in [2010] 320 ITR 577, [in which one of us [S.H. Kapadia,J.] was a party] had an occasion to deal with the first question and it has been answered, accordingly, in favour of the assessee vide Paragraph (25), which reads as under: Page 26 ITA Nos. 943 to 946/Bang/2023 & C.O. Nos. 14 to 17/Bang/2023 “Prior to April 1, 1989, the law, as it then stood, took the view that…

Deputy Commissioner of Income Tax, C-1(1)(1), Bangalore vs. Algonomy Software Private Limited (Formerly Known As Manthan Software Services Pvt Ltd), Bangalore

In the result, all the appeals filed by the revenue stands dismissed and the cross objections being C

ITA 944/BANG/2023[2013-14]Status: DisposedITAT Bangalore19 Jan 2024AY 2013-14

Bench: Shri Laxmi Prasad Sahu & Ms. Madhumita Roy

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(3)Section 147Section 148Section 40

…o the extent of the provision for bad and doubtful debt is sufficient? 6. The first question is no more res integra. Recently, a Division Bench of this Court in the case of Southern Technologies Limited vs. Joint Commissioner of Income Tax, reported in [2010] 320 ITR 577, [in which one of us [S.H. Kapadia,J.] was a party] had an occasion to deal with the first question and it has been answered, accordingly, in favour of the assessee vide Paragraph (25), which reads as under: Page 26 ITA Nos. 943 to 946/Bang/2023 & C.O. Nos. 14 to 17/Bang/2023 “Prior to April 1, 1989, the law, as it then stood, took the view that…

Shri.Prakash R. Nair, Kollam vs. DCIT, Kollam

In the result, the assessee’s appeal is partly allowed for statistical purposes

ITA 141/COCH/2021[2000-2001]Status: DisposedITAT Cochin17 Jan 2024AY 2000-2001

Bench: Shri Sanjay Arora & Shri Manomohan Dasprakash R. Nair Dy.Cit, Central Circle Prop. Dhanya Foods Kollam Kochuppilammoodu Vs. Kollam 691001 [Pan:Abfpn4424P] (Appellant) (Respondent)

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(1)Section 148(1)Section 271(1)(c)Section 274Section 80Section 801A(9)Section 80HSection 80I

…ward which we may, for authority, advert to Kachwala Gems v. Jt. CIT [2007] 288 ITR 10 (SC) and CIT v. Hotel Samrat [2010] 323 ITR 353 (Ker). Real income, subject to the provisions of the Act, is liable to be taxed (Southern Technologies Ltd. v. Jt.CIT [2010] 320 ITR 577 (SC)). The only aspect to be therefore examined is if the adjustment is reasonable, consistent with the facts and circumstances of the case. How could an assessment made inferring recovery of direct cost, implying nil gross profit, be said to be excessive? No case of it being excessive or not reasonable stands made in either quantum or penalty pr…

Kerala State Financial Enterprises Limited, Thrissur vs. DCIT Circle 1(1) & Tps, Thrissur

In the result, the assessee’s appeal is dismissed

ITA 933/COCH/2022[2017-18]Status: DisposedITAT Cochin16 Jan 2024AY 2017-18

Bench: Shri Sanjay Arora & Shri Manomohan Daskerala State Financial Dy. Cit, Circle - 1(1) & Tps Enterprises Ltd. Thrissur Bhadratha, Museum Road Vs. Chembukkavu - 680020 Thrissur [Pan:Aabct3817A] (Appellant) (Respondent)

For Appellant: Shri Harikrishnanunny, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 36(1)(vii)

…raises a single issue, i.e., whether the assessee’s claim for deduction u/s. 36(1)(vii) of the Act for the relevant year is in accordance with law, i.e., as explained by the Hon'ble Apex Court per it’s decision in Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577 (SC), and as further reiterated and explained by it in Vijaya Bank v. CIT [2010] 323 ITR 166 (SC). Interestingly, both the assessee and the Revenue claiming satisfaction of the conditions for a write off (of a bad debt as irrecoverable) in accounts, i.e., as mandated by section 36(1)(vii) of the Act, and the law laid down per the cited decisions,…

Deputy Commissioner of Income-Tax, Circle - 2(1)(1), Bangalore vs. Canara Bank, Bangalore

In the result, appeals filed by assessee and revenue stands partly allowed for statistical purposes

ITA 663/BANG/2023[2019-20]Status: DisposedITAT Bangalore22 Dec 2023AY 2019-20

Bench: Chandra Poojari & Smt. Beena Pillai

For Respondent: Ms. Neera Malhotra, CIT-DR
Section 115JSection 143(3)Section 14ASection 51

…of actual write-off of debts in the loan account of the debtors, is covered in favour of the appellant Bank in the following cases,- (i) Vijaya Bank Vs CIT (2010) (323 ITR 166) (SC) (ii) UCO Bank Vs CIT (240) (ITR 355) (SC) (iii) Southern Technologies Vs CIT (352 ITR 577) (SC) (iv) Canara Bank Vs DCIT (2022 (1) TMI 124) (Trib.- Bangalore) (i.e Appellants own case) 7.4 The assessee further argued that the issue that the bad debt written off should be first adjusted against the credit balance in the Provisions account and only the excess can be claimed as deduction, is also covered in favour of the appellant Bank i…